Are corporations evil?

Yesterday I had the opportunity to speak to the Small Business Alliance of the Siloam Springs Chamber of Commerce on the topic of “Incorporating:  Benefits and Disadvantages.”  Since it was Halloween, I couldn’t resist the urge to pose the question, “Are corporations evil?”

We decided that corporations are like any other instrument or tool.  They are no better or worse than the people who own and operate them.

We then discussed what corporations are and how they operate.  I shared with the group the main two reasons people incorporate their business:  limiting their personal liability for their business debts and liabilities and tax savings.  I shared with the group some important exceptions to the liability and tax issues.

We also discussed the pros and cons for trying to form your own corporation. I openly told the group that they could do it themselves by going to the Arkansas Secretary of State website and forming it online.  However, I strongly advised against it.  Why?  Because there is so much more to properly forming and organizing a corporation than merely filing the Articles of Incorporation online.  That is merely the starting place.

In my opinion, no business should attempt to incorporate without having a good CPA on their team and a good attorney who knows this area of the law.  Tax laws change all the time, and there are too may legal pitfalls for the unwary.

Yesterday afternoon, my law office handed out candy and toys to the approximately 3000 children that visited us for the annual downtown Trick or Treat.  We look forward to it every year.  This year, my wife Carla and I went as a Cowboy and Saloon Girl.  Who says we’re too old to dress up for Halloween?


Published by: David A. Bailey on November 1st, 2011 | Filed under Uncategorized

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